Top Payment Methods in Singapore for Your Business

1. Overview of Payment Trends in Singapore

Singapore, serving as one of the largest financial centers worldwide, leveraging its small yet highly business-friendly and internationally connected environment. The city-state thrives in e-commerce, with 55% of transactions being cross-border. 

The adoption of smartphones is widespread at 90%, fueling the growth of mobile commerce. Popular payment methods include credit cards, debit cards, with 7.7 million in circulation, followed by bank transfers and NETS payments. 

Notably, digital wallets, led by Grab's super app, witnessed a substantial 47% YoY growth in 2021, claiming 29.2% of the market. While credit cards maintain their 42.2% e-commerce market share, digital wallets are anticipated to play a prominent role through 2025. 

Card transactions, especially credit and debit cards, still account for the majority of point-of-sale spending. Cash spending is predicted to decline from 22.3% to 13.2% by 2025.

2. Top Popular Payment Methods in Singapore

2.1. Credit Cards

This is one of the payment methods with a large proportion, widely used for both online and offline transactions, credit cards are a popular payment method in Singapore, offering convenience and rewards programs.

2.2. Debit Cards

 Similar to credit cards, debit cards are often used in transactions, easily withdrawing cash directly from a linked bank account.

2.3. NETS (Network for Electronic Transfers)

A local electronic payment system widely used for retail transactions, NETS cards are often used for day-to-day purchases. eNETS Payment Gateway integrates many payment methods including credit cards and debit cards from major Singapore and Chinese banks.

2.4. Mobile Wallets

With the rise of digital payments, mobile wallets like Apple Pay, Google Pay, and local options such as GrabPay and DBS PayLah! Digital/mobile wallets have gained popularity for in-store and online payments.

2.5. Bank Transfers

Bank transfers stand out as a favored payment method among customers in Singapore, particularly for transactions involving larger sums of money. The administration of bank transfers in the country is facilitated through automated clearing house (ACH) networks, consisting of collaborative financial institutions. 

The introduction of FAST (Fast And Secure Transfers) has marked a significant advancement in electronic funds transfer services. This service enables customers of partner banks to swiftly move Singapore Dollar funds between banks within Singapore, ensuring almost immediate transactions.

Also read: E-commerce Payment: The Key to Global Business Success

2.6. Buy Now Pay Later

Buy now, pay later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay over time, often without interest.

In recent years, the use of BNPL payments has grown significantly, especially during the COVID pandemic. Buy Now Pay Latter's total transaction value is expected to increase from US$507.2 million in 2021 to US$3022.3 million.

2.7. Cash

Despite the increasing use of digital payments, cash is still widely accepted, especially in smaller businesses and local markets. However, consumer payments via cash are expected to gradually decline in the coming years.

2.8. QR Code Payments

Many merchants accept payments through QR codes, where customers can scan the code using their mobile banking app to make payments. Customers open a banking app on their mobile phone and scan the merchant's QR code to pay. The required condition is that the phone must have an internet connection.

2.9. Contactless Payments

With the implementation of contactless payment cards and NFC-enabled devices, users can make secure and swift payments by tapping their cards or devices at point-of-sale terminals.

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3. FAQs

3.1. What are the most used payment methods in Singapore?

As of 2021, approximately 1.46 billion transactions were made in Singapore using credit and debit cards. Credit card usage rates are significantly higher in developed countries. According to World Bank research, the rate of credit card users in Singapore is the 8th highest in the world, with 48.9% of users in this country.

In addition, e-wallet is also one of the widely used payment methods here. According to a report by IDC, Singapore already boasted 1.5 million mobile wallet users. The study further projects a significant growth in e-wallet adoption, foreseeing an increase from 30.4% in 2020 to an expected 94.7% by 2025.

3.2. Is it better to pay in USD or SGD in Singapore?

In Singapore, it is generally more advisable to pay in SGD (Singapore Dollars) rather than USD (United States Dollars). When you make purchases in Singapore, especially for local goods and services, paying in the local currency is typically more convenient and cost-effective. Here are a few reasons why:

Currency Conversion Fees: If you use a foreign currency (such as USD) for transactions in Singapore, you may be subject to currency conversion fees imposed by banks or payment processors. This can result in additional charges on your purchases.

Exchange Rates: When you pay in a foreign currency, merchants may offer you an exchange rate that might not be as favorable as the official exchange rate. Paying in SGD allows you to avoid potentially unfavorable rates.

Local Acceptance: SGD is the official currency of Singapore, and all transactions within the country are conducted in this currency. While major tourist areas and some businesses might accept USD, it's not as widely accepted, especially in smaller shops or local markets.

Smoother Transactions: Paying in the local currency ensures smoother transactions and reduces the likelihood of confusion for both you and the merchant. It also makes it easier to track your expenses.

If you are using a credit card, it's advisable to check with your card issuer about their foreign transaction fees and policies. Some credit cards offer favorable exchange rates, while others may charge additional fees.

3.3. Which payment apps are used in Singapore?

Below is a comprehensive list of some of the most popular e-wallets in Singapore that you can use to make payments.

• DBS PayLah

• UOB Mighty

• OCBC Pay Anyone

• GrabPay

• Apple Wallet

• Google Wallet

• EZ-Link Wallet

• NETSPay

• FavePay

• ShopBack Pay

• GovWallet

• SamsungPay

• ShopeePay

• SingTel Dash

• YouTrip

• Crypto.com